Gold Lower on Profit Taking and Higher Risk Apetite

Gold prices are moderately lower in early U.S. trading Friday, on profit-taking ahead of the weekend and on chart consolidation following recent gains. The gold bulls continue to show resilience as their safe-haven metal has not collapsed even though world stock markets have posted good rebounds recently. April Comex gold was last down $5.00 at $1,234.00 an ounce. March Comex silver was last down $0.075 at $15.095 an ounce.

World stock markets were higher overnight and that means there is better risk appetite in the marketplace. Asian and European stock indexes posted gains to end the week. U.S. stock indexes are pointed toward higher openings Friday morning. A stabilization in crude oil prices recently is a main element assuaging trader and investor worries. Crude oil remains a major “outside market” that has been impacting many other markets on a daily basis.

The other key outside market on Friday morning finds the U.S. dollar index posting modest gains. The greenback bulls have had a good week this week, as prices have begun to trend higher again on a near-term basis.

China is still a focal point for world traders and investors. On Friday the Group of 20 industrial nations met in Shanghai.  Reports said the head of China’s central bank assured his counterparts China will not dramatically devalue the yuan to gain any trade advantages. He also said China’s central bank will employ prudent monetary policy.

via Kitco

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